Transferring wealth American style

Sunday

Sep 30, 2012 at 12:01 AMOct 18, 2012 at 4:34 PM

The sub prime mortgage scheme was one of the greatest transferences of wealth this country has ever seen. According to an AP article in the MWDN 9-23-2012-“Collapsing house prices destroyed $6.5 trillion worth of home equity – the biggest source of wealth for most families. More than 1 in 5 home-owners is stuck with a house worth less than the mortgage on it. Feeling poorer, families have limited their spending and paid down debts.”

Money doesn’t disappear, so where did the 16 $trillion go? There are those who will disregard the numbers, saying it wasn’t really there in the first place. If that‘s so, then it’s okay to make up numbers in home value? Doesn’t this mean the over inflated prices of homes were just made up numbers? If that’s he case, then reduce principal, it’s just a made up number anyway. Either that or that $16 trillion is sitting somewhere. Just where it’s sitting is the question. It’s sitting in the banks is where. Just because the house is worth less doesn’t mean a thing to the banks, it’s still owed to them and even though they caused the housing bubble and crashed it with the subprime mortgages, they say the numbers are real to them and they expect to get paid even though they’re the culprits who destroyed the value.

Seventy percent of the economy is consumer spending, and with trillions lost to consumers no wonder spending is down. Either the government does the spending or the people do the spending. Since neither one can, let’s leave it to the financial industry; now there’s signs hanging outside banks to refinance auto loans! According to NPR news, people are refinancing auto loans for up to seven years. The same thing that happened with mortgage loans will happen all over again with auto loans. We’ll wind up with Americans owing trillions in auto loans for something worth thousands less that what they paid for it. The banks will get their bail outs with the taxpayers footing the bill while more unsustainable debt will be strapped to the backs of unsuspecting citizens.

All aspects of life from cradle to grave are now swamped in debt; this is how trillions in consumer debt translates into “redistribution of wealth”, the very thing candidate Romney is against; Guess it must be okay when wealth is transferred from the citizens to the banks for the privilege of existing; but when anyone starts talking about leveling the playing field, well, then it’s redistribution of wealth from those who work to those who don’t. That’s not the real story, and it’s an intellectually weak and morally flawed defense on behalf of those who control that $16 trillion.

The sub prime mortgage scheme was one of the greatest transferences of wealth this country has ever seen. According to an AP article in the MWDN 9-23-2012-“Collapsing house prices destroyed $6.5 trillion worth of home equity – the biggest source of wealth for most families. More than 1 in 5 home-owners is stuck with a house worth less than the mortgage on it. Feeling poorer, families have limited their spending and paid down debts.”

Money doesn’t disappear, so where did the 16 $trillion go? There are those who will disregard the numbers, saying it wasn’t really there in the first place. If that‘s so, then it’s okay to make up numbers in home value? Doesn’t this mean the over inflated prices of homes were just made up numbers? If that’s he case, then reduce principal, it’s just a made up number anyway. Either that or that $16 trillion is sitting somewhere. Just where it’s sitting is the question. It’s sitting in the banks is where. Just because the house is worth less doesn’t mean a thing to the banks, it’s still owed to them and even though they caused the housing bubble and crashed it with the subprime mortgages, they say the numbers are real to them and they expect to get paid even though they’re the culprits who destroyed the value.

Seventy percent of the economy is consumer spending, and with trillions lost to consumers no wonder spending is down. Either the government does the spending or the people do the spending. Since neither one can, let’s leave it to the financial industry; now there’s signs hanging outside banks to refinance auto loans! According to NPR news, people are refinancing auto loans for up to seven years. The same thing that happened with mortgage loans will happen all over again with auto loans. We’ll wind up with Americans owing trillions in auto loans for something worth thousands less that what they paid for it. The banks will get their bail outs with the taxpayers footing the bill while more unsustainable debt will be strapped to the backs of unsuspecting citizens.

All aspects of life from cradle to grave are now swamped in debt; this is how trillions in consumer debt translates into “redistribution of wealth”, the very thing candidate Romney is against; Guess it must be okay when wealth is transferred from the citizens to the banks for the privilege of existing; but when anyone starts talking about leveling the playing field, well, then it’s redistribution of wealth from those who work to those who don’t. That’s not the real story, and it’s an intellectually weak and morally flawed defense on behalf of those who control that $16 trillion.

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